Generation Development’s FUM up 10%

Oksana Patron

24 January 2023

Generation Development Group, a registered pooled development fund (PDF) specialising in providing development capital to financial sector businesses, has reported a 38% drop in its gross inflows during a December quarter but funds under management (FUM) went up by 10% to $2.4 billion.

In the announcement made to the Australian Securities Exchange (ASX), Generation Life said it experienced solid inflows in the second quarter of $114 million which took year to date inflows to $250 million, making the firm’s third biggest half since the commencement of the life company back in 2004.

However, withdrawals and maturities increased over the period due to multiple death payments and larger redemptions from direct clients in the October month while redemption rates for financial advised clients, which covered over 90% of the company’s gross flows, remained steady.

“While overall inflows are down on our record FY22, it is a good result given the material changes we have experienced in the prevailing macroeconomic environment,” Generation Life’s chief executive, Grant Hackett, said.

Investment bond net inflows stood at $59 million for the quarter.

The firm also said that its investment-linked lifetime annuity, LifeIncome, continued to see growing inflows in Q2 with total FUM surpassing the $10 million threshold.

The group reported that Lonsec’s FUM increased $1,053 million for the quarter and funds under management increased by over $350 million on an average monthly basis during the last three months of 2022.

Generation Development Group holds a 41% interest in Lonsec Holdings which includes Lonsec Investment Solutions providing assistance to dealer groups and independent financial advisers wanting to establish diversified managed portfolios and separately managed account (SMA) solutions.